When you buy shares in a mutual fund you are trusting that the fund's investment advisers share your investment objectives.

Question

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When an investor buys shares in a mutual fund, they are essentially pooling their money with other investors to invest in a professionally managed diversified portfolio of securities. The investment objectives of the fund are typically stated in the prospectus, which outlines the investment strategy and goals of the fund. By investing in the fund, the investor is trusting that the fund's investment advisers share their investment objectives and will make investment decisions in accordance with those objectives. Therefore, the statement is true.

When You Buy Shares in a Mutual Fund You Are